How green is your company?

Wednesday, December 19, 2012

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Organisations might be required to file sustainable development reports as regularly as their financial results. Read about its impact on employees and the skill sets that companies are looking for to fill ‘sustainable’ roles.

What is your company’s carbon footprint? How much electricity and water does it consume? In a world increasingly concerned about environment sustainability, companies will soon be filing sustainability development reports on an annual basis - just as regularly as their financial results.

The infamous Walmart row over the retail giant having spent US$25 million in lobbying in India for FDI rocked the parliament for days, but few know that the company is also known for its sustainability initiatives. It has set a goal of eliminating 20 million metric tonnes of greenhouse gas emissions from its global supply chain of 2015.

A few weeks ago, GreenNGood.com, a company that claims to be India’s first to sell green products online, was honoured with the Green Signal issued by the Green Signal Steering Committee, Centre for Innovation Incubation and Entrepreneurship, IIM-A. The company was awarded four green signal bars for disclosure of greenhouse gas emissions, excellence in material/waste reduction/management and excellence in energy conservation. It labels products/services, on the lines to BEE’s energy star rating and certain organic food certifications. (Also read: India sees green ventures blooming)

Its founder Aparna Bhatnagar, an IIM alumna, left her corporate job and put her savings of R7 lakh to start something that promoted sustainability. “The company specialises in organic products made from waste material such as a clock made from old gramophone records, handbags made from audio cassette tapes - most of the work is done by the differently- abled people on looms designed specially for them, baskets made of newspaper reed etc. Even the products are packed in used cartons. The company ensures that even its vendors use sustainable ingredients and has a systematic approval process in place for supply partners. The entire lifecycle of the product - right from the ingredients to what goes into the product - need to follow sustainable practices,” she says.

Sustainability has three elements - environment, social and economic impact. Most companies only report the financial impact. It’s also possible that soon enough, companies will have to get their sustainable practices audited and file them on an annual basis.

Rahul Dasari, lead, marketing and business development Agneya Carbon Ventures Pvt Ltd, a Pune-based consulting company working in the field of carbon, energy, water and sustainability, says that sustainability has long been part of corporate social responsibility in India but of late there are some regulations in place that Indian companies need to comply with. These include the renewable power purchase obligation that requires companies to source 7% electricity from solar or wind power plants. (Also read: The corporate world is going green)

Companies that consume high power such as steel plants need to compulsorily follow these guidelines. For players in the aviation sector, it is mandatory to have a carbon footprint reduction strategy in place. The department of public sector enterprise mandates PSUs to file sustainability development reporting on an annual basis. SEBI has called upon the top 100 listed companies to file business responsibility reports, just the way they disclose financial results on an annual basis.

And how do these measures impact employees? For one they feel they are taken care of, that their employer is sensitive not only to profits but also to the ecosystem at the workplace. Some companies hold training programmes for their utility and environment and sustainability teams.

EMC India Center of Excellence (COE) provides continuous education to its employees on various aspects of conservation such as water conservation, earth hour etc. The company recently concluded a two-day waste management awareness programme to educate its employees about recycling and responsible waste disposal.

So, what are the skill sets that companies are looking for to fill ‘sustainble’ roles? According to Pankaj Mittal, CEO, ARCHELONS Consulting India, companies that have an environment and sustainability cell in place look for people who have a formal training in energy audits, renewable energy audits and waste management. Manufacturing companies prefer a mechanical engineering degree and a specialisation in supply chain management or a diploma in energy management for somebody who deals with procurement. E-commerce companies require people to audit waste management and procurement procedure of vendors. Some companies also require people who can help them acquire carbon credits for their operations. (Also read: Demand for environment professionals to grow)

Positions such as a sustainability manager require the candidate to develop a sustainability strategy and comply with sustainability regulations, improve cost-effectiveness and efficiencies in core operations, engage in emissions management etc. Their salaries range from R25 lakh to R30 lakh.